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Is Apple Gearing Up For War With Google?

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There are signs that Apple (NSDQ: AAPL) is taking measures to better compete with Google (NSDQ: GOOG) after the internet-giant-turned Android-maker outbid Apple for AdMob and released a phone of its own that it will sell directly to the public.

SEE ALSO: Google May Find Out That Consumers Like To Buy Cellphones The Old Fashioned Way

The two companies, which have been on friendly terms for years, have now entered a new, more adversarial phase, reports BusinessWeek, which talks to sources close to Apple that say given recent actions by Google, Apple is beefing up activity on two fronts: advertising and mergers and acquisitions.

Apple’s new mobile advertising strategy: After Google outbid Apple and spent $750 million to purchase AdMob, Apple went out and purchased Quattro Wireless. Now, sources are saying that Apple aims to create “new kinds of mobile ads,” which wouldn’t really compete with Google, but to make searching on mobile phones (and presumably mobile search ads) obsolete. The sources would not say how Apple plans to do this, it could tap into user data and location information to make ads more relevant. Theories also suggest Apple could have someone shake the device to win a rebate the same way they do to roll dice in games. Apple’s CEO Steve Jobs has appointed Quattro CEO Andrew Miller as the VP of mobile advertising, which is the first person who has ever been assigned to online advertising.

Apple’s new take on M&A: Apple has also hired Adrian Perica, an M&A specialist, formerly of Goldman Sachs, to better compete for deals, according to BusinessWeek. Historically, Apple was never eager to grow by acquisition. Since 1997, Apple has bought only 11 small companies, but that’s set to change. So, what will Apple buy next? AllThingsD suggests Adobe, which has rumored to be a potential candidate for a long time. Whether Apple is considering big-ticket items, like Adobe (NSDQ: ADBE), it’s unclear. It’s market cap is currently at $18.66 billion.

Jan 15, 2010 2:19 PM ET

Apple takes on Google: Nexus One Vs. iPhone


Posted In: Companies, Apple, iPhone, Google, Android

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